SMU Household Goods Moving Services Procedures
Household Goods Moving Services Timeline Checklist
This section outlines the policies and procedures relating to the payment or reimbursement of moving expenses of a newly hired employee or active employee who is moving on behalf of the university. The material in this section pertains to all employees and departments of the University, regardless of the account to be charged.
Active Employee - A person currently on the university payroll who is being transferred to a new job site for the convenience of the university.
New Employee - A person who has been tendered a formal offer of employment by an authorized university official and who has accepted the offer but has not yet been placed on payroll.
Personal Moving Expenses - Expenses incurred by the employee in coming to the Dallas area (i.e. airfare, hotel fees, food, etc.).
Household Goods Moving Expenses - Expenses to be incurred in transporting the employee's personal belongings and physical property to the Dallas area (household furniture, vehicles, etc.).
The University provides payment or reimbursement of personal moving expenses to certain employees as approved by the President or Vice President of the University. Employees must provide evidence of all moving expenses in order to document payment or receive reimbursement. Evidence includes original receipts, proof of payment, and invoices.
Reimbursements made under an accountable plan for qualified moving expenses are considered nontaxable and excluded from gross income. To be considered as qualified moving expenses the deduction is only allowed if the employee’s workplace at the University is at least 50 miles farther from his former residence than was his former principal place of work or if he had no former principal place of work and is at least 50 miles from his former residence.
Reimbursement for or payments for qualified moving expenses paid through Accounts Payable directly to a third party are not reported on employee’s W-2 forms.
Reimbursements or payments for non-qualified moving expenses are included in the employees’ gross income.
For additional information on what is a qualified moving expense and what is a non-qualified moving expense, please refer to the Moving Expense Reimbursement Request form as well as the Procedures section below.
PROCEDURES - PERSONAL MOVING EXPENSES
Employees will be reimbursed for personal moving expenses and payments will be mailed to third parties based on the proper supporting documentation and approvals. To request payment or reimbursement, a completed Moving Expense Reimbursement Request form along with supporting documentation should be sent to the Tax Department for approval. Upon approval, the Tax Department will forward all information to Accounts Payable for payment.
Any excess reimbursement that is not returned or reimbursement that is not supported by documentary evidence presented within 120 days after the expenses are paid or incurred will be treated as income and reported on the employees’ W-2 as wages.
Any reimbursement for non-qualified moving expenses will be reported as taxable income as wages. The Tax Department will notify the employee of all reportable income.
Qualified moving expenses (except those paid to a third party) are not taxable but are reported on employees’ W-2 forms.
PROCEDURES - HOUSEHOLD GOODS MOVING EXPENSES
Departments or divisions are responsible for determining the allowable amount for the move and communicating this to the new employee. Divisions may set allowable coverage based on the position.
When SMU will be paying for any or all of the household goods moving expenses for new or transferring employees, departments are required to enter an epro requisition so a Purchase Order (PO) is generated. The PO allows for departmental review and approval, and places the order in accordance with SMU's Terms & Conditions.
The department contact person or supervisor should email the new employee the list of Household Goods Moving companies and Household Goods - MOVING TIMELINE & CHECKLIST
New Employee Responsibilities:
The employee should obtain estimates from 2-3 of the preferred providers for household goods moves. They should email the estimates to their department contact person or supervisor and state which moving company they would like to use. The department contact person or supervisor will email approval of the dollar amount that SMU will cover to the employee.
Use of a non-preferred moving company must be approved in advance of the move being scheduled by Purchasing and Risk Management so the moving company's insurance coverage can be verified to insure it meets SMU minimum requirements. The department is required to obtain the non-preferred moving company's current W9 and Certificate of Insurance (COI).
Household Goods Moving Company contact information is provided on Purchasing's Preferred Provider page.